https://www.thegef.org/newsroom/press-releases/gef-announces-20-million-...
As funding the climate challenge takes center stage at COP29 in Azerbaijan, the Global Environment Facility (GEF) has announced the latest winners of its Challenge Program for Adaptation Innovation, with $20 million in grants awarded to projects that will reimagine climate adaptation finance.
From initiatives to enhance the adaptive capacity of women entrepreneurs in the agricultural sector through financial inclusion, to scaling up traditional fire management techniques for resilient ecosystems services through carbon credit generation, crowdfunding climate-smart loans, developing a virtual green bank for adaptation, and kickstarting international markets for resilience-building bonds, the 13 award-winning projects all aim to test and scale up vital financial innovations.
The GEF-backed Challenge Program for Adaptation Innovation aims to pilot and de-risk new approaches to adaptation funding, leveraging donor funding to create the conditions for comprehensive private sector engagement in overcoming the shared challenges of climate change.
“Adapting to climate change is one of the defining challenges of our time, but it also offers an undeniable opportunity. By seeding these new approaches to climate adaptation funding, we are enabling the development of innovative technologies, while reducing risk and providing the conditions needed to open financial flows and enable new investors and sectors to take action,” Carlos Manuel Rodríguez, GEF CEO and Chairperson said.
Selected from well over 100 proponents from around the globe, the latest tranche of winners will bring GEF investments in the Challenge Program to over $40 million across 32 projects in implementation or development, with an additional $40 million to be invested in the period to 2026.
The teams behind each of the winning proposals announced at COP29 will be invited to further develop and implement their concept in collaboration with one of GEF’s 18 agency partners.
Financing for the Challenge Program comes from the GEF’s two dedicated climate adaptation funds – the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF). The LDCF is the only multilateral climate fund designed to address the unique climate adaptation needs of Least Developed Countries; while the SCCF is focused on targeting the adaptation priorities of Small Island Developing States as well as catalyzing innovation, technology transfer, and private sector engagement. Together the two funds have provided approximately $2.5 billion in grant financing and mobilized an additional $14.3 billion from other sources, which is expected to reduce the vulnerability of 84 million people in 118 countries since their inception in 2001.
The Global Environment Facility (GEF) is a multilateral family of funds dedicated to confronting biodiversity loss, climate change, and pollution, and supporting land and ocean health. Its financing enables developing countries to address complex challenges and work towards international environmental goals. The partnership includes 186 member governments as well as civil society, Indigenous Peoples, women, and youth, with a focus on integration and inclusivity. Over the past three decades, the GEF has provided more than $25 billion in financing and mobilized $145 billion for country-driven priority projects. The family of funds includes the Global Environment Facility Trust Fund, Global Biodiversity Framework Fund (GBFF), Least Developed Countries Fund (LDCF), Special Climate Change Fund (SCCF), Nagoya Protocol Implementation Fund (NPIF), and Capacity-building Initiative for Transparency Trust Fund (CBIT).
About the Least Developed Countries Fund
The GEF-managed Least Developed Countries Fund (LDCF) is the only multilateral fund that focuses exclusively on the unique climate adaptation needs of Least Developed Countries. LDCF provides support in several priority areas for adaptation including agriculture, water, food, health, nature-based solutions, infrastructure, and climate information services. It builds institutional capacity for adaptation planning, scaling up finance, engaging the private sector, and adopting a whole-of-society approach for inclusive adaptation. The LDCF has financed 360 projects and programs with approximately $2.2 billion in grants, directly benefiting more than 74 million people and strengthening the management of more than 14 million hectares of land for climate resilience.
About the Special Climate Change Fund
The GEF-managed Special Climate Change Fund (SCCF) helps developing countries address the negative impacts of climate change through innovation, technology transfer, and private sector engagement. It also offers targeted support to Small Island Developing States, given their specific climate adaptation needs. The SCCF has provided $388 million in grants for 96 projects related to climate-resilient agriculture value chains, improved water management, integrated coastal management, climate risk insurance, nature-based solutions, and more, benefitting approximately 9.5 million people and helping to bring more than 5.3 million hectares of land under more sustainable management.
Quotes and details about winning project concepts:
Africa Enterprise Challenge Fund
Women Adapt - Catalyzing Women-led Climate-Smart Investments through Climate Adaptation Technologies and Climate Resilience Services in Burkina Faso, Benin, and Nigeria
Media contact: David Iraya, diraya@aecfafrica.org
www.aecfafrica.org
“We will leverage AECF's expertise in the private sector, agricultural innovation, and entrepreneurship to facilitate the development and execution of the Women Adapt project. Our extensive network, track record in supporting MSMEs and smallholder farmers in 26 countries across Sub-Saharan Africa, and the organization's gender policy framework in Africa make AECF well-positioned to drive impactful interventions that benefit vulnerable countries. We're proud to partner with GEF and UNIDO through the Women Adapt project to finance climate-smart investments for women-led businesses and smallholder farmers in Burkina Faso, Benin, and Nigeria to enhance food security and incomes for rural women.”
Victoria Sabula, CEO, Africa Enterprise Challenge Fund
At a global level, the agricultural sector faces profound challenges exacerbated by climate change, with smallholder farmers bearing the brunt of these impacts. At the regional level, West Africa's vulnerability is compounded by its heavy reliance on rain-fed agriculture, making it particularly susceptible to climate-related risks. Erratic weather patterns, soil degradation, and water scarcity threaten agricultural productivity, food security, and socio-economic development amidst political instability. These systemic barriers underscore the urgent need for innovative solutions to empower smallholder farmers, enhance their adaptive capacity, and foster sustainable agricultural development in West Africa.
The Women Adapt project aims to empower women-led agriculture MSMEs, and smallholders affected by climate change in Benin, Nigeria, and Burkina Faso. By catalyzing climate-smart investments through innovative adaptation technologies and resilience services, the project seeks to enhance women entrepreneurs' adaptive capacity and resilience in the agricultural sector.
The project's main objective is to empower women smallholder farmers to adapt to climate change and build resilience through enhanced access to climate-resilient technologies and increased access to fintech digital services, financial services, and insurance. Thus, the project will contribute to the broader goals of climate Adaptation, financial inclusion, and sustainable development.
Climate Fund Managers
GAIA Climate Loan Fund
Media contact: Sophie Blythe, s.blythe@climatefundmanagers.com
www.climatefundmanagers.com
“The GAIA platform plays a vital role in unlocking the private sector capital needed to support climate adaptation and mitigation in the world’s most vulnerable regions. The GEF Challenge Program grant to our Technical Assistance Facility will enable us to advance a robust pipeline of high-impact, investable projects in SIDS and LDCs, providing local communities with sustainable climate solutions, delivered quickly and at scale.”
Andrew Johnstone, CEO, Climate Fund Managers (CFM)
The GAIA Climate Loan Fund (GAIA) is a USD 1.48 billion target blended finance platform designed to catalyse private sector investment into high-impact, climate-resilient projects in emerging markets. A private debt facility, GAIA will provide long-term loans to climate adaptation and mitigation projects in up to 25 emerging markets, with a minimum of 25% capital allocated to Small Island Development States (SIDS) and Least Developed Countries (LDCs).
GAIA's blended finance structure leverages public funds to de-risk projects, creating an opportunity for private investors to participate with a risk-return profile aligned to their needs.
GAIA is managed by Climate Fund Managers (CFM), a climate-focused blended finance investment manager, supported by global advisory firm Pollination Group as Strategic Impact Advisor. It is backed by multiple public and private sector organisations, including sponsors and co-founders Mitsubishi UFJ Financial Group (MUFG) and Development Finance Institute Canada (FinDev Canada) as well as the Green Climate Fund (GCF) as an anchor investor.
With GEF's support through its Challenge Program for Adaptation Innovation, GAIA’s Technical Assistance (TA) Facility will support bankable and eligible projects in target SIDS and LDCs. The TA facility will provide advisory services, and capacity building support to enhance environmental and social standards, of projects, strengthen impact rationale and delivery, ensure projects meet the fund’s investment criteria to deliver meaningful climate impacts.
